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| Teaching Since: | May 2017 |
| Last Sign in: | 408 Weeks Ago, 4 Days Ago |
| Questions Answered: | 66690 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
1. A bond will pay off $100 with probability 99% and will pay off nothing with probability 1%. The equivalent risk-free rate of return is 5%. What is an appropriate promised yield on this bond?
2. An L.A. Lakers bond promises an investment rate of return of 9%. Time-equivalent Treasuries offer 6%. Is this necessarily a good investment? Explain.
3. A Disney bond promises an investment rate of return of 7%. Time-equivalent Treasuries offer 7%. Is the Disney bond necessarily a bad investment? Explain.
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